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Governmental Affairs


May 16, 2003

 

KEY LEGISLATION:

Revenue Estimating Conference Yields
Some Good News, Some Bad

The Joint Revenue Estimating Conference concluded that FY 2004’s General
Fund estimates look good, but the remaining FY 2003 budget has immediate
problems due to a shortfall in the state’s School Aid Fund (SAF). The SAF
came in $91.9 million below the January estimates. This money needs to be
made up before October 1, 2003, and legislators have already begun to float
schemes to fill this hole.

On the positive side, FY 2003 estimates of the General Fund have not
changed. Moreover, the FY 2004 General Fund revenues are estimated to be
$32.9 million below previous estimates, a smaller shortfall than some had predicted.

Other predictions from the conference:
- While the unemployment rate for Michigan will be 6.5 percent for calendar
year 2003, it will drop to 6.1 percent in 2004.
- Personal income will grow by 3.1 percent in calendar year 2003, but
increase to 5.1 percent growth in 2004.
- Michigan wage and salary employment is estimated to be down 0.7 percent
from the previous year, but will increase 1.4 percent for calendar year 2004.

 

Senate GOP Wants Bad-Driver Fees

Under a plan devised by the Senate Republican Caucus, drivers with excessive
points on their license will pay a higher driver registration fee as
punishment. According to sponsors of the package, drivers with seven points
on their license will be hit for an extra $100 driver registration fee.
Another $50 will be assessed for each point over seven. A driver with 10
points on his or her license would pay $250 extra to renew the yearly
license plate tag.

It is estimated that upwards of $60 million would be raised through such a
program, although sponsor Sen. Jud Gilbert insists this is not about raising
money for the budget. Gilbert asserts the proposal stems from reports
showing that Michigan drivers with bad records claimed 1,822 lives over the
past eight years, amassing the fourth highest rate in the country. New
Jersey had similar problems but saw its fatality rate drop after employing
the same type of program.

 

Congressional Race Getting Crowded

The announcement from Congressman Nick Smith (R-Jackson) that he will not
run again has wannabes scrambling. The latest to confirm he is running is
former Rep. Paul DeWeese (R-Williamston). DeWeese lost the senatorial race
last fall to Sen. Virg Bernero (D-Lansing), who has just indicated that he
is running for mayor of Lansing.

The 7th Congressional District, which is comprised of Branch, Eaton,
Hillsdale, Jackson, Lenawee and portions of Washtenaw and Calhoun counties,
has also drawn the interest of several prominent Republicans.

Others reportedly running for the seat include Rep. Clark Bisbee
(R-Jackson), Rep. Gene DeRossett (R-Manchester) and Ann Norlander, former
Calhoun County clerk. Two other prominent politicians considering a bid
include former Sen. Joe Schwarz (R-Battle Creek) and Sen. Cameron Brown
(R-Sturgis).

Bisbee is well positioned geographically, as are Schwarz and Norlander. If
Schwarz decides to run, his name identification after his failed bid for
governor last year could work in his favor. It is unclear whether Schwarz
will join the race, however, and he has had some problems within his own
party within the last few years, especially after he engineered U.S. Sen.
John McCain’s win in Michigan’s primary against the party’s choice,
George W. Bush.

 

Anti-Spam Bill Clears House – Workgroups Scheduled

An anti-spam bill sponsored by Rep. Bill Huizenga (R-Zeeland) cleared the
House unanimously. The bill has been sent to a workgroup in the Senate,
however, as Sen. Mike Bishop (R-Rochester) thought the bill needed work
before moving forward.

Sen. Bishop is the sponsor of a similar Senate bill that would create a
state-administered "Do-Not-Spam" list. Bishop apparently has problems with
the lack of enforcement included in the House bill and wants it to have some
teeth. Sen. Bruce Patterson (R-Canton), chair of the Senate Technology and
Energy Committee, has asked the group to report back to him next week with
their results.


KEY BILL INTRODUCTIONS:

HB 4689, sponsored by Rep. Ruth Johnson (R-Holly), to prohibit products in
landfills in include beverage containers, whole tires, oil, lead acid
batteries, low-level radioactive waste, and hazardous waste.

HB 4690, sponsored by Rep. Ruth Johnson, to provide definition of beverage
container in the solid waste management law.

HB 4701, sponsored by Rep. Bruce Caswell (R-Hillsdale), to permit qualified
certain noncontiguous, wooded property as agricultural property exemption.

SB 498, sponsored by Sen. Patricia Birkholz (R-Saugatuck), to prohibit
products in landfills to beverage containers, whole tires, oil, lead acid
batteries, low-level radioactive waste, and hazardous waste.

To view the content and current status of retail-related bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com


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Specific comments or questions regarding this bulletin should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
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